tonight at ten, labour unveils a major new policy on how school and hospital buildings should be financed. the shadow chancellor, john mcdonnell, tells the party conference that a labour government would end contracts under the private finance initiative. he said firms were making huge profits from the deals on hospitals and schools in england and wales and the bill for the taxpayer was heading towards £200 billion. i can tell you today it's what you have been calling for — we will bring existing pfi contracts back in house. we're bringing them back, we're bringing them back! we'll be looking at the commitment and asking how a labour government would pay for the change. also tonight: in germany, chancellor merkel starts a fourth term in office and says she'll win back the voters who turned to the hard right in the elections. in north lincolnshire, a 16—year—old girl is arrested on suspicion of attempted murder, after a member of staff was stabbed at a school. a visit to hull to see this year's finalists for one of the world's

most prestigious arts awards. and prince harry and girlfriend meghan markle have made their first official public appearance together at the invictus games. and coming up in sportsday on bbc news: gareth barry captains west brom on the night of his record—breaking 633rd premier league appearance. we'll tell you how he and his team got on at arsenal. good evening. in a significant new spending commitment, labour says it would bring contracts signed under the private finance initiative into public ownership if it formed the next government. the shadow chancellor, john mcdonnell, told labour's conference that firms were making huge profits from the deals. the pfi contracts have been used

by successive governments as a way of attracting private funding for public projects such as hospitals and schools in return for interest payments. our political editor laura kuenssberg reports from brighton. any spare change... a couple of quid for the speech, but how much to take schools, hospitals, prisons built and run by private firms, back into public control? jeremy corbyn's best political friend would be in charge of a labour government cheque—book and today he promised they'd look at all pfi contracts and take the bulk back into tax payer's hands. let me give you this commitment, we'll put an end to this scandal and we'll reduce the cost to the taxpayers how? well, we've already pledged there will be no new pfi deals signed by us in government. but we'll go further and i can tell you today,

it's what you've been calling for. we'll bring existing pfi contracts back in—house. we're bringing them back. they loved it here. an audience full of union members. there had been complaints for years about some of the worst deals and companies creaming off profits. we've seen millions of pounds wasted in pfi buildings and contracts. that's money down the tubes. all the money that we're having to pay in interest to big businesses, it will mean that money will come back into services. for 20 years though, tory and labour governments paid private companies... this is proceeding on time and on cost? on time and on cost. ..to spread the cost and the risk of big building projects. mr corbyn, do we know how much the pfi bill will be? but injeremy corbyn's labour, pfi would be a thing of the past. the pfi contract you announced today, do you know how much this is going to cost?

i'm going for lunch, you heard the speech, you'll see all the details. there's no detail in the speech, how much is it going to cost, sir? the party says they'd buy out private contacts with government bonds or borrowing. when are we going to get more details, sir? but it's not clear how much they'd be willing to do, or how many of the existing 700 contracts they'd unpick. the devil is always in the detail. we've got to find out how much this will cost. i've got no doubt whatsoever in paying for it, it will still be better value for the public purse, for the taxpayer than letting these contracts run for the next 20 years. but do you accept though to start with, to take these contracts back in—house, that would at least, in the short term, cost the taxpayer a lot of money? of course it will do, we can borrow, there's nothing against borrowing. yet this feels more than anything, a point of principle. some of them were badly formed contracts which have ended up being rather expensive, but you're not going to save money by getting out of them

because presumably, you will have to pay the companies with which you've got the legal agreement in order to get out of them. these days, labour doesn't agree on everything. but the election has given this party new confidence to act on its conviction, not driven by cost. laura is in brighton tonight. cani can i pick up on your last thought about levels of confidence, what does this policy tell us about that? well, i think the extent to which john mcdonnell was able to make such a big promise, is a demonstration of how buoyant the labour party feels after the election. for years people in the labour movement have complained about pfi, whether the cliches about a hospital being charged £20 to change a light bulb oi’ charged £20 to change a light bulb ora charged £20 to change a light bulb or a school being charged to have somebody build a new book shell of. but what ever you think of the

contracts, they have been part and parcel of how a big chunk of the economy, the public sector, has been run for 20 years or more. so if your child has a new building at school oi’ child has a new building at school or you have a new wing at a hospital, the chances are they have been treated or educated in something paid for by the pfi mechanism. for labour to say goodbye to that whole model is a big deal. and it is another move way from the legacy of gordon brown and tony blair, who maxed out using the contracts when they were in power. but over the years, pfi contracts have changed quite a lot. the thought is that early on some had, we re thought is that early on some had, were quite bad value and had bad features, but they have changed and they have been phased out in scotland. the labour party tonight is still sketchy about the extent of

the promise they're making. they can't tell us yet how much they would borrow to make this happen and they can't tell us how many of hundreds of contracts they would actually revisit and basically tear up. but this is another symbol of general feeling here this week that since the election the labour party is so much more confident in what they feel able to promise. thank you. thank you. a fourth round of brexit negotiations between british and eu negotiators started this evening in brussels. the brexit secretary, david davis, insisted there could be ‘no excuses' for standing in the way of progress, following the prime minister's speech in florence last friday. but the eu's lead negotiator, michel barnier, repeated his warning that unless progress was made on key questions such as settling britain's liabilities, it would be difficult to move on to trade agreements. the european union is keen and eager to understand better how the uk government will translate the prime minister's speech into negotiating positions.

this is essential and would enable us to advance this week, i hope, and make real progress over the coming months. 0ur correspondent chris morris is in brussels for evening. based on what we have heard there and what people are telling you, how would you assess the state of play now? tinge mood music's improved. that is important. i spoke to several european ministers who were here to talk to mr barnier. they all said they thought the tone of prime minister's speech was positive and constructive. but they backed mr barnier in saying, we need more detail. i think that's the problem. listening to mr barnier and mr davis speaking side by side, it felt like they were talking past each other

rather than two each other. we heard from mr barnier we need progress on financial settlement and before we talk about trade in the future, before we take about the transitional period that the prime minister proposed. for his part, david davis said we have made concrete proposals, they were in the prime minister's speech and to delay further and make excuses won't be acceptable. so i think the problem now is how to get past that, because the two sides need to move forward and if the eu is not going to allow mr davis to move on to the other issues until things like the settle m e nt issues until things like the settlement are improved, then thaning will be a problem, —— that will be a problem. thank you. thank you. in germany, chancellor merkel says she wants to win back the voters who deserted her party for the far—right afd in yesterday's election.

she starts her fourth term in a weaker position and has to build a new coalition government. to do that, she needs to secure at least half of the 709 seats in germany's new parliament. mrs merkel‘s party has more than a third of the seats. the second biggest party has already ruled itself out of any coalition. so that leaves the smaller parties. but the chancellor has already vetoed a collaboration with the anti—immigration, anti—islam afd. 0ur berlin correspondentjenny hill has been to mrs merkel‘s home state in the east of the country , to talk to people who voted for the afd. it is not how angela merkel wanted germany to look. in a country so tainted by the past, much was unthinkable, unsayable. notany more. it's their time now. the many

faces of afd. teacher, pensioner, labourer, businessman. they used to vote conservative, social democratic, left party, green or like this lady not at all. translation: the old people don't dare leave the house after 6 and when i open the door the first thing i see are headscarfs and i get on a tram andi i see are headscarfs and i get on a tram and i see groups of young men. in in the east support is particularly strong. i was a dissident in east germany and experienced the methods of a totalitarian state. violent division. painful reminders. afd we re division. painful reminders. afd were chose the german borders.

angela merkel, down, but not yet out. many voters haven't forgiven herfor out. many voters haven't forgiven her for opening out. many voters haven't forgiven herfor opening the doors out. many voters haven't forgiven her for opening the doors and they're not all. opinion polls showed clearly that she has a lot of support in the german population. so more than 50% of respondents say if they could vote directly, they would vote for angela merkel. so that is interesting. she commands respect and that is seen in the christian democratic party. afd's already tasted power in the regional party. but now the party is split. moderates walking out in disgust. not this new mp. the first demand an inquiry into angela merkel‘s refugee policy. translation: we have impact through publicity. we can't change laws, because the others will boycott us, so we important, because

voters discuss our policies. a problem perhaps for the political power house of europe. opposition to the euro, to further eu integration. afd's the euro, to further eu integration. afd‘s success shows that the pop lieuism that has spread through europe is taken root here. germans have tended to identify as europeans first. but a significant proportion are voting for a party which wants to claw back powers from brussels and regain its national sovereignty. it speaks to supporters of all ages. i support the afd, because it is the future of my friends, me of course, by friends, my school mates and so on and it will be a dark future if nothing really happens. fear for the

future, nostalgia for a country considered lost. voices which won't be ignored. voices which won't be ignored. damian grammaticas is in berlin tonight. let's auk about talk about the result and the challenges for angela merkel nationally and on the european stage. it does pose a significant challenge. her first challenge is forming this governing coalition. she reminded germans, she said her party was the clear winner, more than 10 percentage points ahead of its nearest rival and she said she would form that coalition. it will be difficult with free market liberals and greens have been to be welded together. that will make it harder to support reforms of the euro and the eurozone. and i think she will take heart from what we saw

at the afd and we have had an extraordinary scene where the chair woman of the party walked out, saying she was abandoning the others in parliament, because they had become too extreme. so already splits appearing there on the far right and with 94 members of parliament, they will have a voice, but they will have greater scrutiny. angela merkel isjoining but they will have greater scrutiny. angela merkel is joining with the liberals. there has been hope they would much for a softer brexit deal. business figures here say no, and the european market is their priority and not the uk one. thank you. a brief look at some of the day's other news stories. a seventh person has been arrested by police investigating the parsons green tube bombing. the 20—year—old was arrested in cardiff early this morning. he's been taken to a police station in south london. one man has already been charged with attempted murder. the surgeon nasser kurdy, who helped victims of the manchester arena terror attack, has been stabbed in the neck outside a mosque in hale in greater manchester.

police are continuing to question two men about the incident. the global boss of the taxi service uber has apologised for mistakes made by the company, after it was refused a new licence to operate in london. transport for london said it had concerns over the company's conduct. uber is appealing against the decision, but admitted it ‘must change'. the foreign minister of north korea has accused president trump of declaring war on his country. ri yong—ho said its military had every right to shoot down us jets, even if they were outside north korean airspace. the pentagon warned this evening that mr trump will be "provided with options" if north korea doesn't change its conduct. 0ur north america editor, jon sopel, is in washington. give us a sense of how seriously this is now being taken, notjust in the pentagon, but in the white house

too. when you think the volume can't get any higher, it seems to go up a notch. we've had the backwards and forwards, the playground chants at one another about the relative sanity of each leader. well now, we've got something different. this idea that the north korean are accusing the americans of having made a declaration of war and that would justify shooting down an american bomber, even outside north korean airspace. 0f american bomber, even outside north korean airspace. of course, the pentagon have to take that seriously and say that would be completely unacceptable. you can be sure they will be preparing measures to take in retaliation. do they try to jam north korean ground radar? that would be seen as an act of war. what would be seen as an act of war. what would happen if an american plane we re would happen if an american plane were shot down? there are no particular answers to these questions, just an intensification of the rhetoric and the threats on both sides. no seeing how this is going to calm down. the chinese say, what we need is to cool everything

down. instead everything's getting hotter. jon, thank thanks very much a 16—year—old girl has been arrested on suspicion of attempted murder, after a woman was stabbed at a secondary school — winterton community academy — in north lincolnshire. police said a kitchen knife was used in the attack. the victim is in hospital, but her injuries are not life—threatening. 0ur correspondent, dan johnson, sent this report. the start of the school day at this small town comprehensive was shaken by an incident that ended with a member of staff seriously injured and a year 11 pupil under arrest. we reacted immediately and were on scene in minutes. the pupil had been detained by members of staff and obviously medical treatment was being given to the victim. a stabbing involving a knife, you believe? that is what i believe, yes. we understand this incident took place in an office, away from other children. the 61—year—old who was hurt, is a welfare officer based here at the school. she is in hospital being treated for what are discribed as serious,

but not life—threatening injuries. the school's head teacher was one of the first to see what had happened. when i arrived in the office, there were already a number of members of staff who were dealing with the situation, administering first aid to the member of staff, restraining the students as well. this is the opposite really of a big inner city school, where you might have got this before? yes, completely, we're all surprised — out of the blue. the school stayed open, but, after a text alert, many parents took children home. we just had a message to say there had been a serious incident and they would be in touch, but everyone's was safe. the kids were texting saying they were locked in the tutor room, so again panic, ijust want to get her home now. officers expect to be here most of week. they're still questioning the 16—year—old girl held on suspicion of attempted murder. iraqi kurds are expected to have voted overwhelmingly for independence from baghdad, despite international pressure

to cancel the referendum. but tonight, the un secretary—general says he's concerned the vote could be destabilising — echoing the fears of several states in the region. the kurds make up nearly a fifth of iraq's population. they live in the oil—rich north of the country, where they have an autonomous region. neighbouring turkey and iran have also condemned the referendum, fearing it might encourage their own kurdish minorities to pursue independence. 0ur middle east correspondent, 0rla guerin, reports now from the city of irbil. waiting patiently, as they have for generations. kurd arriving before the polls opened, defying the international community and the government in baghdad. first in line, 65—year—old azahd. "i came here at 6am," he told us. "this is the greatest day of my life." and for many, it's a day

of remembrance, like the ali family, who lost a proud peshmerga fighter killed last year by the so—called islamic state. his widow says the vote has brought him back. translation: it's a very happy day for him and for us. we feel like he is right here. he sacrificed himself for this land. his blood was not shed in vain. then, at last, time to cast her ballot. "we hope that we are getting ourfreedom," she says. but this vote is being watched anxiously by neighbouring states and by the west. the fear is it could spark new conflict and not only in iraq. the kurds say that what's happening here today

is about self—determination, about democracy in action. far from trying to stop them, they say the international community should be giving them strong support. there is a real sense here of history in the making. and whatever comes next, the votes being cast today could reshape the middle east. even before the result, kurds took to the streets in the city of kirkuk. we are free now. the oil—rich city is controlled by kurdish forces but also claimed by the central government in baghdad. and the divisions here are now all too clear. in arab neighbourhoods, we found a very stark contrast. no referendum fever here. riyad didn't vote and is worried about the future of iraq. do you feel like you might

lose your country? "yes," he says, "we didn't before, but we do now." but for the kurds, tonight, time to celebrate. they say the referendum is a mandate for negotiations with baghdad. they won't be redrawing borders or declaring independence in the morning, but they have passed a point of no return. 0rla guerin, bbc news, irbil. the supermarket chain aldi has reported record sales of almost £9 billion in the uk and ireland for last year. aldi has more than 700 stores in britain, and they're opening 70 more this year. but profits fell sharply in the past year, as it sought to keep prices lower than rivals, as our business correspondent, emma simpson, explains. it doesn't sell a wide range of products and you won't see many

well—known brands along these warehouse aisles. but they aim to be cheaper than anyone else. it's the aldi way, one of the most disruptive forces in british retail. we've grown ourselves by over £1 billion in a year, attracted one million more customers through our stores. meet the boss who has been instrumental in pulling in more affluent shoppers. in his first broadcast interview he told me why aldi is expanding with a new store every week. i think the potential for that growth in future is tremendously exciting and that's why we continue to invest and where others are scaling back we are most definitely scaling up. it really was no frills when this privately owned business first arrived in the uk. it's come a long way, including selling fresh produce. and now it's improving its stores. for aldi, it's all

about economies of scale and being lean and efficient. take these nappies. the bar codes are everywhere to speed up scanning at the checkouts. and the way it's stacked it doesn't change, from the warehouse to the shelf. minimum handling saves time and money, pioneered by the discounters. they have had a seismic effect on the big four in particular and especially now, it's still the case because inflation has returned to the market and supermarkets know they can't afford to let their guard down. the discounters effectively have a foot on their throat, that mean they can't pass on price increases easily and blithely as they had in the past. but at a time when food costs are on the up, aldi's profits are on the way down. how long can you allow profits to slide? our focus has always been on long—term sustainability and whilst our profits have dropped three years in a row we have remained a very stable

and profitable business and whatever happens and whatever challenges arise, we maintain that price gap. this business is still a lot smaller than the big four but it's growing fast. its main office down below is doubling in size to cope with future demand. for now at least aldi has got momentum. emma simpson, bbc news atherstone. prince harry and his girlfriend, meghan markle, have made theirfirst official public appearance together at the invictus games in toronto. they were both at this weekend's opening ceremony of the sports event for wounded and injured servicemen and women — and veterans — which was founded by prince harry. sarah campbell reports. it's the confirmation royal fans have been waiting for. the couple have been togetherfor over a year, but until this week, they've gone to great lengths to keep their relationship out of the view of the cameras. no more, their affection for each other obvious. prince harry is in toronto as founder of the invictus games,

and this is home for meghan markle. she stars in a successful tv show, which is filmed here. they're shown here on their way to watch wheelchair tennis, at one of the city centre sports venues. the couple look casual and comfortable in each other‘s presence. this is her second appearance at the games. on saturday night, she was seated a few metres away from the prince at the opening ceremony. thanks to my service i think my life definitely changed for the better. tonight, prince harry described the games as life changing. being able to wear your nation's flag on your arm or your chest, being part of a team, respect, team work, discipline, all these things that, you know what, it's lacking, it's lacking in the world today. as i've said over and over again, these individuals, people that have served, continue to serve, whether they be injured or not, are fantastic role models. the pictures will feature on front pages around the world. in a recent magazine article, meghan markle said they were a couple and in love. and it shows.

sarah campbell, bbc news. the annual turner prize is one of the the art world's most prestigious awards, and this year, it is being presented in hull, as part of the uk city of culture programme. previous winners have included damien hirst and grayson perry. 0ur arts editor, will gompertz, has been looking at the work of the four artists shortlisted for this year's prize. the annual turner prize exhibition has come to hull, 2017 uk city of culture. but then... before you know it, you're off to gaza, in the first of this year's four exhibits. at 44 years old, rosalind nashashibi is the youngest of the shortlisted artists. she's presenting two i6mm films, one set in gaza, the other in guatemala, both exploring the relationships between people and places. at 63, lubaina himid is the oldest artist in this year's turner prize. she's a painter, making tableaus, collages, canvasses and pottery pieces, all of which explore

the same central theme, which is the representation of black culture in art history and the media. she is the beneficiary of this year's rule change, which allows artists over 50 to be considered for inclusion. given that some of these pieces date back to the 1980s, you may ask why is a zanzibar—born artist not been nominated before? artists of colour, i think it's fair to say, were marginalised in their time then. but the generation of artists in the 80s and there often known together as the black heart movement, it was a real struggle. they often had to show themselves and each other to acquire any visibility and fight against an art world mainstream whose concern seemed to lie elsewhere. this is the work of hurvin anderson, a 52—year—old painter who makes landscapes, still lives and portraits. you can see he's drawing on the classical cannon, you can see constable, freud and manet to name but a few in his work.

he's also drawing on his own cultural experiences, specifically his pa rents' jamaican heritage and his own life growing up in the city of birmingham. this is andrea buttner‘s exhibit. she was born in stuttgart, germany, in 1972. she's interested in the relationship between art, craft, ethics and philosophy. she's particularly interested as a subject on humility and poverty. you can see eight prints depicting a beggar. unusually for an artist, i suppose, she's not necessarily asking to look across at her work, or up at her work, but she's inviting you to do look down. the show is likely to disappoint headline writers. there are no enormous backsides to riff off, no unmade beds upon which to pour scorn. there's no shock or sensation. maybe it's because the age threshold has been removed